In 2016, Country Garden unveiled a $100 billion project in Malaysia called Forest City. It was supposed to accommodate nearly 1 million people. Eight years on, the complex is virtually empty.
This story was produced by our colleagues at the BBC.
China’s real estate sector has had a tumultuous few years. While the woes of property giant Evergrande have often stolen headlines, Country Garden is another that has been wrapped up in the unfolding real estate crisis.
This week, the Chinese property developer announced that top executives there are having their salaries slashed as the company continues to struggle with colossal debts. And the crisis in the property sector in China is being felt beyond the country’s borders.
In 2016, Country Garden unveiled a $100 billion project in Malaysia called Forest City. It was supposed to accommodate nearly 1 million people. Eight years on, the complex is virtually empty. Below, a dispatch from inside Forest City:
At the tip of Malaysia, driving south towards the coast, there’s a strange sight in the distance: a dozen tower blocks on the horizon, which locals call “ghost city.”
In reality, it’s a Chinese-built mega-housing development. And on first impressions, it’s hard to believe that anyone actually lives here.
Even in midafternoon, the long corridors in the towers are pitch dark. It feels more like a haunted house than a happy home.
Finding residents was a struggle, but eventually I met Joanne Kaur. She moved here from northern Malaysia and has been renting for the past four months
“Do you feel like it’s a ghost town?” she said.
“From what I’ve seen so far? Yes, I would have to agree,” I said. “Yeah,” she responded. “Maybe you should try after 12. Take a stroll.”
Forest City was a chance for people in China’s aspirational middle class to invest in a second home abroad, which they could then rent out to locals here.
But the company behind the project, Country Garden, is facing debts of nearly $200 billion. Now, with cash drying up, Forest City is a surreal place — almost like visiting an abandoned resort.
As I stand in the shopping mall, basically half of it is still a building site. In front of me is a kids’ train. There’s no one on it, and the driver is just doing endless loops.
“Normally around here, you’re on your own,” said Nazmi Hamafiah, who used to live in Forest City. After six months, he decided to cut his losses and get out. He didn’t even mind losing his rental deposit.
“It’s multibillion dollar project, it’s supposed to be good,” he said. “It’s supposed to meet expectations but … frustrating.”
Many millions in China have invested their life savings in projects just like this — and they’ll be wanting some reassurance sooner rather than later.
